By : Erik Gruenwedel | Posted: 12 Nov 2009
egruenwedel@questex.com

Image Entertainment reported a loss of more than $1.6 million for the three-month quarter ended Sept. 30, on revenues of nearly $30 million, a steeper slide than the net loss of $465,000 it reported during the same quarter of 2008.

DVD revenue for the quarter was down 12.6% to nearly $24.4 million, while Blu-ray Disc revenue was up 150% to $2.5 million. Revenues from digital distribution increased 8.7% to more than $1 million, while broadcast revenue was down by nearly 48% to $612,000.

Image pointed to a weak release slate for the quarter, which included Management with Jennifer Aniston, Steve Zahn and Woody Harrelson, and Terry Fator: Live from Las Vegas, as partly responsible for the financial results.

Two rounds of payroll cuts and other cost-cutting measures have helped Image reduce overhead, the company said, but a $4 million payment on a convertible note is due Nov. 15. If Image can’t arrange an extension, the company will default on the note.

“We do not have the funds necessary to make the payment,” said Image president and CFO Jeff Framer. “If we have something to announce, we will do so at the appropriate time.”

Image stock closed Nov. 12 at 82 cents. The company was notified in mid-September that its stock was in danger of being delisted from The NASDAQ Global Market board if it can’t maintain a minimum share bid price of $1 for 10 straight business days by March 15.
 

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